World markets subdued as Wall Street rally loses momentum

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Feb. 13, 2018. Asian markets surged Tuesday following overnight gains on the Wall Street recouping some of the losses from the dreadful global rout but still far from recovering the price levels at the start of the year. (AP Photo/Ahn Young-joon)

A board above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average Monday, Feb. 12, 2018. Stocks are surging on Wall Street as the market claws back some of its massive losses from last week. The Dow Jones industrials climbed 400 points. (AP Photo/Richard Drew)

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Feb. 13, 2018. Asian markets surged Tuesday following overnight gains on the Wall Street recouping some of the losses from the dreadful global rout but still far from recovering the price levels at the start of the year. (AP Photo/Ahn Young-joon)

SEOUL, South Korea — Stock markets in Europe and Asia were subdued Tuesday as the afterglow from Wall Street's overnight rally faded.

WHERE THINGS STAND: Sentiment is jittery after it took just nine days for stocks to plunge 10 percent from their latest peak, which was reached on Jan. 26. A drop of that size is known on Wall Street as a market "correction." According to LPL Financial, it was the swiftest move from a record high to a correction in the history of the S&P 500. The index rose 1.5 percent Friday but still wound up with its worst weekly loss in more than two years.

US INFLATION: A key question is whether the correction has already hit bottom, said Jingyi Pan, a market strategist at IG. "Nevertheless, the worst is likely not over for this week for the simple reason that we have U.S. CPI sitting as a mammoth event risk this week," said Pan, referring to the Wednesday release of U.S. consumer price index data for January. Concerns over inflation helped caused last week's market plunge, so the data will be watched closely.

JAPAN OUTLOOK: Japan is due to release fourth quarter GDP data on Wednesday. The government looks likely to keep Bank of Japan Governor Haruhiko Kuroda on as central bank chief for another term. But the decision on the BOJ governorship comes at a time when concern is growing over the central bank's strategy for eventually winding down its massive monetary stimulus.

OIL: Benchmark U.S. crude fell 29 cents to $59.00 per barrel in electronic trading on the New York Mercantile Exchange. It gained 9 cents on Monday. Brent crude, used to price international oils, dropped 16 cents to $62.43 per barrel in London.

CURRENCIES: The dollar slipped to 107.55 yen from 108.66 yen. The euro rose to $1.2351 from $1.2289.